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Who is Regulated in a Securities Issuance?

Cite this article as: Jason Mance Gordon, "Who is Regulated in a Securities Issuance?," in The Business Professor, updated January 14, 2015, last accessed April 9, 2020, https://thebusinessprofessor.com/knowledge-base/who-is-regulated-in-a-securities-issuance/.
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Who is Regulated in a Securities Issuance?
This video explains the parties who are regulated as part of the securities issuance process.

Next Article: Disclosure Documents in a Securities Issuance


Who are the parties regulated in an offer to sell securities?

The ’33 Act regulates offers to sell securities by a number of individuals, including the issuer, underwriter, controlling party, or sales representative. The “issuer” is the individual or business organization offering a security for sale to the public. “Underwriters” are individuals participating in the original distribution of securities by selling such securities for the issue or by guaranteeing their sale. A “controlling party” is one who controls or is controlled by the issuer, such as a major stockholder of a corporation. A “sales representative” is anyone who contracts with a purchaser or who is a motivating influence that causes the purchase transaction to occur.

•    Discussion: Why do you think that the securities laws regulate the conduct of such a wide variety of sellers or securities? How does regulating the conduct of these individuals align with the objectives of the securities laws?

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